What Happened?

GNC Energy has signed a contract with DL E&C to supply generators for a data center in Gimpo, valued at $180 million. This represents a significant 7.96% of GNC Energy’s revenue for the first half of 2025. The contract period spans from August 29, 2025, to October 24, 2027, a total of 2 years and 1 month.

Why is this Contract Important?

This contract holds significant implications for GNC Energy’s data center business expansion and long-term growth. Strengthening the partnership with DL E&C, a major Korean construction company, increases the likelihood of securing larger projects in the future. Furthermore, securing stable revenue for over two years allows GNC Energy to maintain consistent growth momentum.

What Does This Mean for GNC Energy’s Future?

GNC Energy demonstrated remarkable growth in its 2025 semi-annual report, with consolidated revenue of KRW 127.1 billion (YoY +65%) and operating profit of KRW 27.1 billion (YoY +408%). The emergency/commercial generator business accounts for 73.7% of revenue, establishing itself as the core business. GNC Energy has built a stable growth foundation through a diverse portfolio, including overseas power plant operation, mechanical equipment business, and renewable energy business. This contract is expected to further contribute to this growth trajectory. However, potential risk factors such as intensifying competition in the data center market, fluctuations in raw material prices and exchange rates, and large-scale project execution risks should also be considered.

What Should Investors Do?

This contract reaffirms GNC Energy’s growth potential and is likely to have a positive impact on its stock price. However, investment decisions should always be made with caution. Before making any investment, it is crucial to thoroughly analyze the company’s financial status, market conditions, and consult with financial professionals.